Michael Kors in Decline, the Future of News

ByScott Galloway ·

12 February 2015

Winners & Losers in Your Inbox.

Prominent losers this week: Michael Kors, the Media, and Pandora. The most successful fashion company of 2014 may be growing too fast: It opened 200 new stores last year while just recently taking back control of its direct e-commerce from Neiman Marcus. Another loss: upping inventory by 65% last year, while Google searches for the brand have declined by 22% between Q3 and Q4. Investors are picking up on this loss: share prices declined 25% year on year in February.

Why is the Media a loser? Because it is obsessed with itself, chasing the story of Brian Williams while missing the real one – President Obama kicks off his 7th presidential year with an interview on Vox and BuzzFeed (not NBC). That shows you where the future is – not nightly news.

Pandora’s share price fell has been cut in half between February 2014 and 2015, blaming a pullback in mobile advertising. However, a look at the numbers shows advertisers are allocating a budget to mobile, just not on Pandora.

Winners – Facebook, with $12 billion in revenue and $3 billion in profits in 2014. All that while 6 in 7 new users were outside of wealthy geographies (Western Europe, U.S.). See full video for more and subscribe to our YouTube channel.